Texas Property Tax Law Changes - as of September 2019 - Glenn Hegar Texas Comptroller of Public Accounts - Texas ...
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Glenn Hegar
Texas Comptroller of Public Accounts
Texas Property
Tax Law
Changes
as of
September 2019Texas Property Tax
Property Tax Bills:
86th Texas Legislature
This publication includes highlights of recent legislation relating to property
The following acronyms are used in this
tax. The highlights are general summaries and do not reflect the exact or com-
document:
plete text of the legislation highlighted. Not all legislation impacting property
tax is addressed. Please be advised that this information is being provided HB House Bill
solely as an informational resource. The information provided is not intended HJR House Joint Resolution
for use in lieu of, or as a substitute for, the legislation referenced herein and SB Senate Bill
should not be relied upon as such. Additionally, the information provided nei- PUC Public Utility Commission of Texas
ther constitutes nor serves as a substitute for legal advice. Questions regarding TCEQ Texas Commission on
the meaning or interpretation of any information included or referenced in this Environmental Quality
publication should, as appropriate or necessary, be directed to an attorney or TDLR Texas Department of Licensing and
other appropriate counsel. Regulation
TEA Texas Education Agency
The Legislature enacted HB 4172 which made nonsubstantive revisions of cer-
tain local laws concerning water and wastewater special districts. The Legis- The Property Tax Assistance Division at the
lature enacted laws impacting specific special districts that impose a property Texas Comptroller of Public Accounts pro-
tax; these bills and HB 4172 are also not included in this publication. vides property tax information and resourc-
es for taxpayers, local taxing entities, ap-
Governor Greg Abbott vetoed three bills with property related provisions, in-
praisal districts and appraisal review boards.
cluding SB 1804 which would have modified the definition of “additional sales
and use tax” for a hospital district that imposes the sales and use tax under For more information, visit our website
Special District Local Laws Code Chapter 1061, Subchapter G, relating to the comptroller.texas.gov/taxinfo/proptax
Midland County Hospital District of Midland County, Texas. Other bills added or call us toll-free at 1-800-252-9121 (press 2
a similar provision into law. The Governor vetoed HB 994 which would have al- to access the menu, then press 1 to contact
lowed certain taxpayers in one county to appeal appraisal review board deter- the Information Services Team). In Austin,
minations to justice court. Finally, the Governor vetoed HB 2111 which would call (512) 305-9999.
have allowed certain school districts to continue to receive a Property Value
Study deduction related to taxes paid into a tax increment fund for the duration Sign up to receive email updates on
of the reinvestment zone as determined under Tax Code Section 311.017. the Comptroller topics of your choice
at comptroller.texas.gov/subscribe.
Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2019 — iii — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2019
Texas Property Tax
Table of Contents
Tax Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Chapter 1. General Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Chapter 5. State Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Chapter 6. Local Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Chapter 11. Taxable Property and Exemptions . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Chapter 21. Taxable Situs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Chapter 22. Renditions and Other Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Chapter 23. Appraisal Methods and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . 15
Chapter 25. Local Appraisal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Chapter 26. Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Chapter 31. Collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Chapter 33. Delinquency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Chapter 34. Tax Sales and Redemption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Chapter 41. Local Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Chapter 41A. Appeal Through Binding Arbitration . . . . . . . . . . . . . . . . . . . . . . . 41
Chapter 42. Judicial Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Chapter 311. Tax Increment Financing Act . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Chapter 312. Property Redevelopment and Tax Abatement Act . . . . . . . . . . . . . . . . . 44
Chapter 313. Texas Economic Development Act . . . . . . . . . . . . . . . . . . . . . . . . . 45
Education Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Election Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Finance Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Government Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Health and Safety Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Local Government Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Occupations Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Penal Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Special District Local Laws Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Transportation Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Water Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Session Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
Texas Constitution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2019 — iiiiv — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2019
Effective Jan. 1, 2020, and takes effect only if HB 3 becomes
Tax Code law.
Chapter 1. General Provisions Section 1.071
Section 1.04 SB 1856 adds this section to require a collector or taxing unit
SB 1943 amends this section to add subdivision (20) to pro- required by the Property Tax Code to deliver a refund to send
vide that “heir property” means real property: the refund to the person’s mailing address as listed on the
• owned by one or more individuals, at least one of appraisal roll. Notwithstanding this requirement, if a person
whom claims the property as the individual’s resi- files a written request with the collector or taxing unit that a
dence homestead; and refund owed to the person be sent to a particular address, the
• acquired by the owner or owners by will, transfer on collector or taxing unit shall send the refund to the address
death deed, or intestacy, regardless of whether the in- stated in the request.
terests of the owners are recorded in the real property
Effective Sept. 1, 2019, and the change in law made by this
records of the county in which the property is located.
bill applies only to a refund made on or after the effective
The bill adds subdivision (21) to provide that “heir property date of this bill.
owner” means an owner of heir property who claims the
property as the individual’s residence homestead. Section 1.085
SB 2 amends subsection (a) to add information requested under
Effective Sept. 1, 2019, and the changes in law made by this Tax Code Section 41.461(a)(2) to the material that may be deliv-
bill apply only to a tax year that begins on or after the effec- ered in an electronic format if agreed to by the chief appraiser
tive date of this bill. and the owner or the individual designated by the owner.
Section 1.045 Effective Jan. 1, 2020, and takes effect only if HB 3 becomes
SB 2 adds this section to provide that unless the context in- law.
dicates otherwise:
HB 1060 adds subsection (m) to provide that notwithstanding
• a reference in law to a taxing unit’s effective mainte-
any other provision of this section, a property owner need not
nance and operations rate is a reference to the taxing
enter into an agreement under this section to be entitled to
unit’s no-new-revenue maintenance and operations
electronic delivery of a notice of a protest hearing under Tax
rate, as defined by Tax Code Chapter 26;
Code Section 41.46.
• a reference in law to a taxing unit’s effective tax rate
is a reference to the taxing unit’s no-new-revenue tax Effective Sept. 1, 2019.
rate, as defined by Tax Code Chapter 26; and
• a reference in law to a taxing unit’s rollback tax rate is Section 1.086
a reference to the taxing unit’s voter-approval tax rate, SB 2 adds this section to require a chief appraiser, on the
as defined by Tax Code Chapter 26. written request of an owner of a residential property that is
occupied by the owner as the owner’s principal residence, to
Effective Jan. 1, 2020, and takes effect only if HB 3 becomes
send to the owner’s email address each notice required by the
law.
Property Tax Code related to the following:
• a change in value of the property;
Section 1.07 • the eligibility of the property for an exemption; or
SB 2 amends subsection (a) to add an exception to the existing
• the grant, denial, cancellation, or other change in the
provision that an official or agency required by the Property
status of an exemption or exemption application ap-
Tax Code to deliver a notice to a property owner may deliver
plicable to the property.
the notice by regular first-class mail, with postage prepaid, to
include if the parties agree that the notice must be delivered A property owner must provide the email address to which
by the method provided under Tax Code Section 1.086. the chief appraiser must send these notices. A chief appraiser
who delivers the notice electronically is not required to mail
Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2019 — 1the same notice to the property owner. A request remains in Section 5.041
effect until revoked by the property owner in a written revo- SB 2 amends subsection (b) to require the course for ap-
cation filed with the chief appraiser. After a property owner praisal review board members to be at least eight hours of
makes a request and before the chief appraiser may deliver classroom training and education.
the notice electronically, the chief appraiser must send an
email to the address provided by the property owner confirm- The bill amends subsection (c) to provide that if the training
ing the owner’s request to receive notices electronically. A for appraisal review board members is provided to an indi-
chief appraiser that maintains an Internet website shall pro- vidual other than a member of the appraisal review board,
vide a form on the website that a property owner may use to the Comptroller may assess a fee not to exceed $50 for each
make a request electronically. person trained.
Effective Jan. 1, 2020, and takes effect only if HB 3 becomes The bill amends subsection (e-1) to require the continuing
law. education course for appraisal review board members to be at
least four hours of classroom training and education.
Chapter 5. State Administration
The bill amends subsection (e-3) to provide that if the con-
Section 5.01 tinuing education training for appraisal review board mem-
SB 2 adds this section to require the Comptroller to appoint bers is provided to an individual other than a member of the
the property tax administration advisory board to advise the appraisal review board, the Comptroller may assess a fee not
Comptroller with respect to the division or divisions within to exceed $50 for each person trained.
the office of the Comptroller with primary responsibility for
Effective Jan. 1, 2020; takes effect only if HB 3 becomes law;
state administration of property taxation and state oversight
and this section, as amended by this bill, applies only to an
of appraisal districts.
appraisal review board member appointed to serve a term of
The advisory board may make recommendations to the office that begins on or after Jan. 1, 2020.
Comptroller regarding improving the effectiveness and ef-
ficiency of the property tax system, best practices, and com- Section 5.043
plaint resolution procedures. Any advice to the Comptroller SB 2 adds this section which applies only to persons who
relating to these matters that is provided by a member of the have agreed to serve as arbitrators under Tax Code Chapter
advisory board must be provided at a meeting called by the 41A. The Comptroller shall:
Comptroller. • approve curricula and provide an arbitration manual
and other materials for use in training and educating
The members of the advisory board serve at the pleasure of arbitrators;
the Comptroller. The advisory board is composed of at least • make all materials for use in training and educating
six members appointed by the Comptroller. The members of arbitrators freely available online; and
the board should include: • establish and supervise a training program on proper-
• representatives of property taxpayers, appraisal dis- ty tax law for the training and education of arbitrators.
tricts, assessors, and school districts; and
• a person who has knowledge or experience in conduct- The training program must emphasize the requirements re-
ing ratio studies. garding the equal and uniform appraisal of property and be
at least four hours in length.
The bill provides that Government Code Chapter 2110 does
not apply to the advisory board. The training program may be provided online. The Comp-
troller by rule may prescribe the manner by which the Comp-
Effective Jan. 1, 2020, and takes effect only if HB 3 becomes troller may verify that a person taking the training program
law. online has taken and completed the program.
The Comptroller may contract with service providers to as-
sist with the duties of the arbitration training, but the training
program may not be provided by an appraisal district, the
2 — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2019chief appraiser or another employee of an appraisal district, • a description of the documents an owner is required
a member of the board of directors of an appraisal district, a by Tax Code Section 11.43(o) to submit with an ap-
member of an appraisal review board, or a taxing unit. plication to demonstrate the owner’s ownership of an
interest in heir property;
The Comptroller may assess a fee to recover a portion of the • contact information for the division of the State Bar
costs incurred for the training program, but the fee may not of Texas from which a person may obtain a listing of
exceed $50 for each person trained. If the training is provided individuals and organizations available to provide free
to a person other than a person who has agreed to serve as an or reduced-fee legal assistance; and
arbitrator under Tax Code Chapter 41A, the Comptroller may • a general description of the process by which an owner
assess a fee not to exceed $50 for each person trained. may record the owner’s interest in heir property in the
The Comptroller shall prepare an arbitration manual for use real property records of the county in which the prop-
in the training program. The manual shall be updated regu- erty is located.
larly and may be revised on request, in writing, to the Comp- Effective Sept. 1, 2019, and the changes in law made by this
troller. The revised language must be approved by the unani- bill apply only to a tax year that begins on or after the effec-
mous agreement of a committee selected by the Comptroller tive date of this bill. Not later than Jan. 1, 2020, the Comp-
and representing, equally, taxpayers and chief appraisers. The troller shall make available the pamphlet required by this
person requesting the revision must pay the costs of media- section, as added by this bill.
tion if the Comptroller determines that mediation is required.
Effective Jan. 1, 2020, and takes effect only if HB 3 becomes Section 5.07
law. The Comptroller shall implement this section as soon as SB 2 adds subsections (f) and (g) to require the Comptroller
practicable after Jan. 1, 2020. to prescribe tax rate calculation forms to be used by the des-
ignated officer or employee of each:
Section 5.05 • taxing unit other than a school district to calculate and
SB 2 adds subsections (c-1) and (c-2) to require an appraisal submit the no-new-revenue tax rate and the voter-ap-
district to appraise property in accordance with any ap- proval tax rate for the taxing unit as required by Tax
praisal manuals required by law to be prepared and issued Code Chapter 26; and
by the Comptroller. Appraisal manuals required by law to • school district to calculate and submit the no-new-
be prepared and issued by the Comptroller for the purpose revenue tax rate and the voter-approval tax rate for
of determining the market value of property shall be pre- the district as required by Tax Code Chapter 26; and
pared based on generally accepted appraisal methods and submit the rate to maintain the same amount of state
techniques. and local revenue per weighted student that the district
received in the school year beginning in the preceding
Effective Jan. 1, 2020, and takes effect only if HB 3 becomes tax year as required by Tax Code Chapter 26.
law. This section, as amended by this bill, applies only to
the appraisal of property for property tax purposes for a tax The forms must:
year beginning on or after Jan. 1, 2020. • be in an electronic format;
• have blanks that can be filled in electronically;
Section 5.061 • be capable of being certified by the designated officer
SB 1943 adds this section to require the Comptroller to or employee after completion as accurately calculating
prepare and electronically publish a pamphlet that provides the applicable tax rates and using values that are the
information to assist heir property owners in applying for same as the values shown in, as applicable, the taxing
a residence homestead exemption authorized by Tax Code unit’s certified appraisal roll or the certified estimate
Chapter 11. The bill provides that the pamphlet must include: of taxable value of property in the taxing unit prepared
• a list of the residence homestead exemptions autho- under Tax Code Section 26.01(a-1); and
rized by Tax Code Chapter 11; • be capable of being electronically incorporated into
• a description of the process for applying for an exemp- the property tax database maintained by each apprais-
tion as prescribed by Tax Code Section 11.43; al district under Tax Code Section 26.17 and submitted
Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2019 — 3electronically to the county assessor-collector of each • collect and review the information submitted that re-
county in which all or part of the territory of the taxing lates to each special district.
unit is located.
Effective Jan. 1, 2020, and takes effect only if HB 3 becomes
The bill adds subsection (h) to provide that for purposes of law. This section, as amended by this bill, applies only to
subsections (f) and (g), the Comptroller shall use the forms information submitted to the Comptroller that relates to a
published on the Comptroller’s Internet website as of Jan. tax year beginning on or after Jan. 1, 2020.
1, 2019, modified as necessary to comply with the require-
ments of this section. The Comptroller shall update the forms Section 5.091
as necessary to reflect formatting or other nonsubstantive SB 2 amends subsection (a) to require the Comptroller to
changes. prescribe the manner in which and the deadline by which ap-
praisal districts are required to submit tax rates to the Comp-
The bill adds subsection (i) to authorize the Comptroller to troller for the currently required statewide list of tax rates.
revise the forms to reflect substantive changes other than The bill strikes the provision that the list does not include
those described by subsection (h) or on receipt of a request school district tax rates, requires the Comptroller to prepare
in writing. A revision under this subsection must be approved the list as reported by each appraisal district, and strikes the
by the agreement of a majority of the members of a commit- provision that the list is prepared for the preceding year. The
tee selected by the Comptroller who are present at a com- list of tax rates must be alphabetical according to the county
mittee meeting at which a quorum is present. The members or counties in which each taxing unit is located and the name
of the committee must represent, equally, taxpayers, taxing of each taxing unit (rather than list the tax rates in descend-
units or persons designated by taxing units, and assessors. ing order).
In the case of a revision for which the Comptroller receives
a request in writing, the person requesting the revision shall The bill amends subsection (b) to modify the deadline by
pay the costs of mediation if the Comptroller determines that which the Comptroller must publish the required list in sub-
mediation is required. section (a) from not later than December 31 of each year to
not later than January 1 of the following year.
The bill adds subsection (j) to provide that a meeting of the
committee held under subsection (i) is not subject to the re- Effective Jan. 1, 2020, and takes effect only if HB 3 becomes
quirements of Government Code Chapter 551. law. The Comptroller shall comply with this section, as
amended by this bill, not later than Jan. 1, 2022, with re-
Effective Jan. 1, 2020, and takes effect only if HB 3 becomes gard to tax rate information related to a taxing unit located
law. The Comptroller shall comply with Tax Code Section wholly or partly in a county with a population of 120,000
5.07(f), (g), (h), and (i), as added by this bill, as soon as prac- or more. The Comptroller shall comply with this section, as
ticable after Jan. 1, 2020. amended by this bill, not later than Jan. 1, 2023, with re-
gard to tax rate information related to a taxing unit located
Section 5.09 wholly in a county with a population of less than 120,000.
SB 2 amends subsection (a) to add special districts to the
types of taxing units for which the Comptroller must include Section 5.102
value and tax rate information in the currently required bien- HB 3384 amends subsection (a) to rename the taxpayer as-
nial report. sistance portion of the Comptroller’s appraisal district review
The bill adds subsection (a-1) to require the Comptroller to from “taxpayer assistance provided” to “the taxpayer assis-
prescribe the format by which an appraisal district or taxing tance provided by each appraisal district.”
unit must submit information to the Comptroller for the bien- The bill adds subsection (a-1) to authorize the Comptroller
nial report. The bill requires the Comptroller to: to conduct a limited-scope review in place of the review re-
• collect and review in detail the information submitted quired by subsection (a), upon chief appraiser request, if the
that relates to each county, municipality, and school appraisal district is established in a county located wholly or
district; and partly in an area declared by the Governor to be a disaster
area during the tax year in which the review is required and
4 — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2019the Comptroller determines that one of the following circum- board. The bill strikes provisions related to the administra-
stances exists and was caused by the disaster: tion of this survey. The bill also strikes the annual report the
• a building used by the appraisal district to conduct Comptroller must issue summarizing survey forms submitted
business is destroyed or is inaccessible or damaged to by property owners concerning appraisal review boards.
the extent that it is unusable for at least 30 days;
Effective Jan. 1, 2020, and takes effect only if HB 3 becomes
• the appraisal district’s records are destroyed or are un-
law.
usable for at least 30 days;
• the appraisal district’s computer system is destroyed
or is unusable for at least 30 days; or
Section 5.104
SB 2 adds this section to require the Comptroller to prepare
• due to extraordinary circumstances, the appraisal dis-
an appraisal review board survey that allows certain individ-
trict does not have the resources to undergo a review
uals to submit comments and suggestions to the Comptrol-
unless the review is limited in scope.
ler regarding an appraisal review board. The bill requires the
The bill adds subsection (a-2) to provide that the current rule- Comptroller to prepare instructions for completing and sub-
making is for scoring a review under this section (instead of mitting the survey and to implement and maintain a method
“the” review). that allows certain individuals to electronically complete and
submit the survey through a uniform resource locator (URL)
Effective June 7, 2019. address.
SB 2 amends subsections (a) and (c) to provide that the cur- The following individuals who attend a hearing in person
rently required review of appraisal districts include a review or by telephone conference call on a motion filed under Tax
of the compliance with standards, procedures, and methodol- Code Section 25.25 to correct the appraisal roll or a pro-
ogy prescribed by any appraisal manuals required by law to test under Tax Code Chapter 41 may complete and submit
be prepared and issued by the Comptroller. The bill changes a survey:
the advisory board the Comptroller consults to establish pro- • a property owner whose property is the subject of the
cedures and standards for conducting and scoring reviews to motion or protest;
the property tax administration advisory board (rather than • the designated agent of the owner; or
the advisory committee under Government Code Section • a designated representative of the appraisal district in
403.302). which the motion or protest is filed.
Effective Jan. 1, 2020, takes effect only if HB 3 becomes law, The survey must allow an individual to submit comments and
and applies to this section, as amended by this bill, only to suggestions regarding the matters listed in Tax Code Section
the appraisal of property for property tax purposes for a tax 5.103(b) and any other matter related to the fairness and ef-
year beginning on or after Jan. 1, 2020. ficiency of the appraisal review board.
HB 4170 amends subsections (d) and (e) to conform to Chap- An appraisal district must provide to each property owner or
ter 450 (HB 2447), Acts of the 81st Legislature, Regular designated agent of the owner who is authorized to submit a
Session, 2009, to change references from the “Board of Tax survey a notice that states that the owner or agent is entitled
Professional Examiners” to “Texas Department of Licensing to complete and submit the survey, may submit the survey to
and Regulation,” from “board” to “department,” and from the Comptroller, and may obtain a paper copy of the survey
“presiding officer” to “executive director.” and instructions for completing the survey at the appraisal
Effective Sept. 1, 2019. office. The notice must include the URL address and state
the survey may be submitted in person; by mail; by electron-
Section 5.103 ic mail; or through the URL address. An appraisal district
SB 2 repeals subsections (e) and (f) which require the Comp- must provide the notice to a property owner or the designated
troller to prescribe the contents of a survey form for the pur- agent of the owner:
pose of providing the public a reasonable opportunity to offer • at or before the first hearing on the motion or protest;
comments and suggestions concerning the appraisal review and
Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2019 — 5• with each order under Tax Code Section 25.25 or Tax Section 5.13
Code Section 41.47 determining a motion or protest, SB 2 amends subsection (d) to provide that when the Comp-
as applicable, delivered by the appraisal review board troller conducts a performance audit, the report includes the
or a panel of the board. extent to which the appraisal district complies with appraisal
standards and practices prescribed by any appraisal manuals
At or before the first hearing on the motion or protest, the
required by law to be prepared and issued by the Comptroller.
appraisal review board or panel must provide verbal notice
to the property owner or designated agent of the owner of the Effective Jan. 1, 2020, and takes effect only if HB 3 becomes
owner’s or agent’s right to complete and submit the survey. law. This section, as amended by this bill, applies only to
the appraisal of property for property tax purposes for a tax
If an appraisal district provides the notice or an appraisal re-
year beginning on or after Jan. 1, 2020.
view board provides the verbal notice to a property owner or
the designated agent of the owner at or before a hearing, the Chapter 6. Local Administration
appraisal district or board, as applicable, is not required to
provide another notice in the same manner to the owner or Section 6.035
agent at or before another hearing on a motion or protest held SB 2 amends subsection (a-1) to lower from five years to three
on the same day. years the amount of time an individual is ineligible to serve
on the appraisal district board of directors after the individ-
The bill provides that an individual who elects to submit
ual has engaged in the business of appraising property for
the survey must submit the survey to the Comptroller and
compensation for use in a proceeding under the Property Tax
requires the Comptroller to allow an individual to submit a
Code or has represented property owners for compensation
survey to the Comptroller in the following manner:
in proceedings under the Property Tax Code.
• in person;
• by mail; Effective Jan. 1, 2020, and takes effect only if HB 3 becomes
• by electronic mail; or law.
• through the URL address.
Section 6.054
An individual may submit only one survey for each hearing.
SB 2 adds this section to prohibit an individual from being
An appraisal district may not require a property owner or
employed by an appraisal district if the individual is an of-
the designated agent of the owner to complete a survey at the
ficer of a taxing unit that participates in the appraisal district
appraisal office.
or an employee of a taxing unit that participates in the ap-
The Comptroller shall issue an annual report that summa- praisal district.
rizes the information included in the surveys submitted dur-
Effective Jan. 1, 2020, and takes effect only if HB 3 becomes
ing the preceding tax year. The report may not disclose the
law.
identity of an individual who submitted a survey. The Comp-
troller may adopt rules necessary to implement this section.
Section 6.15
Effective Jan. 1, 2020, and takes effect only if HB 3 becomes SB 2 adds subsection (c-1) to provide that current subsections
law. The Comptroller shall prepare and make available the (a) and (b), regarding ex parte communications by the board
survey and instructions for completing and submitting the of directors and a chief appraiser, do not prohibit a member of
survey required by this section, as added by this bill, as soon the board of directors of an appraisal district from transmit-
as practicable after Jan. 1, 2020. An appraisal district is not ting to the chief appraiser without comment a complaint by a
required to provide the survey or instructions under a re- property owner or taxing unit about the appraisal of a specific
quirement of this section until the survey and instructions property, provided that the transmission is in writing.
are prepared and made available by the Comptroller.
Effective Jan. 1, 2020, and takes effect only if HB 3 becomes
law.
6 — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2019Section 6.16 board for an appraisal district described by subsection (b-2),
SB 2 adds this section to authorize a chief appraiser to main- the local administrative district judge shall select an adequate
tain a list of the following individuals who have designated number of qualified individuals to permit the chair of the ap-
themselves as an individual who will provide free assistance praisal review board to fill the positions on each special panel
to an owner of residential property that is occupied by the established under Tax Code Section 6.425.
owner as the owner’s principal residence:
Effective Sept. 1, 2020; takes effect only if HB 3 becomes
• a real estate broker or sales agent licensed under Oc-
law; and Tax Code Section 6.41(d-9), as amended by this
cupations Code Chapter 1101;
bill, applies only to the appointment of appraisal review
• a real estate appraiser licensed or certified under Oc-
board members to terms beginning on or after Jan. 1, 2021.
cupations Code Chapter 1103; or
• a property tax consultant registered under Occupa- HB 2179 amends subsection (f) to modify the current
tions Code Chapter 1152. grounds for removal of appraisal review board members to
strike “clear and convincing” from “clear and convincing evi-
On the request of these residential property owners, a chief
dence of repeated bias or misconduct.”
appraiser who maintains a list shall provide to the owner a
copy of the list. The bill provides that a list must be orga- The bill amends subsection (i) to add an exception to the ex
nized by county; be available on the appraisal district’s Inter- parte communication restrictions relating to a local admin-
net website, if the appraisal district maintains a website; and istrative district judge to allow communication between a
provide the name, contact information, and job title of each property tax consultant or a property owner or an agent of the
individual who will provide free assistance. property owner and the local administrative district judge re-
garding information relating to or described by subsection (f).
A person must designate himself or herself as an individual
who will provide free assistance by completing a form pre- Effective June 10, 2019. The changes in law to Tax Code Sec-
scribed by the chief appraiser and submitting the form to the tion 6.41(f), as amended by this bill, apply only to a pro-
chief appraiser. ceeding to remove an appraisal review board member that
begins on or after the effective date of this bill. The changes
Effective Jan. 1, 2020, and takes effect only if HB 3 becomes
in law made to Tax Code Section 6.41(i), as amended by this
law.
bill, apply only to an offense committed under that subsec-
tion before, on, or after the effective date of this bill, except
Section 6.41
that a final conviction for an offense committed under that
SB 2 amends subsection (b) to add subsections (b-1) and (b-
subsection before the effective date of this bill is unaffected
2) as exceptions to the current requirement that the appraisal
by this bill.
review board consists of three members unless increased by
the board of directors.
Section 6.412
The bill creates subsection (b-1) from the existing ability for SB 2 amends subsection (a) to provide that an individual is
the appraisal board of directors to increase the size of the ineligible to serve on an appraisal review board if the indi-
appraisal review board by resolution and adds subsection (b- vidual is related within the third degree by consanguinity
2) to provide that an appraisal district board of directors for or within the second degree of affinity, as determined under
a district established in a county with a population of one Government Code Chapter 573, to a member of the appraisal
million or more by resolution of a majority of the board’s review board.
members shall increase the size of the district’s appraisal re-
The bill amends subsection (d) to modify the current coun-
view board to the number of members the board of directors
ty population bracket for individuals in those counties who
considers appropriate to manage the duties of the appraisal
are ineligible to serve on the appraisal review board if the
review board, including the duties of each special panel es-
person meets certain criteria, from a county having a popu-
tablished under Tax Code Section 6.425.
lation of more than 100,000 to a county described by Tax
The bill adds subsection (d-9) to provide that in selecting in- Code Section 6.41(d-1), relating to the local administrative
dividuals who are to serve as members of the appraisal review district judge appointing appraisal review board members
Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2019 — 7in a county with a population of 120,000 or more. The bill of more than a majority of the members of the board or panel
amends the subsection to add to the criteria that makes an may not be required.
individual ineligible to serve on an appraisal review board
Effective Jan. 1, 2020; takes effect only if HB 3 becomes law;
member in these counties: if the individual served for all or
and Tax Code Section 6.42(d), as added by this bill, applies
part of three previous terms as an appraisal review board
only to a recommendation, determination, decision, or other
member or auxiliary board member.
action by an appraisal review board or a panel of such a
The bill repeals subsection (e) which provides that a person board on or after Jan. 1, 2020.
who has served for all or part of three consecutive terms as
an appraisal review board member is ineligible to serve on Section 6.425
the appraisal review board during a term that begins on the SB 2 adds this section to require an appraisal review board for
next January 1 following the third of those consecutive terms. an appraisal district described by Tax Code Section 6.41(b-2),
relating to appraisal review boards in a county with a popu-
Effective Jan. 1, 2020, and takes effect only if HB 3 becomes lation of one million or more, to establish special panels to
law. This section, as amended by this bill, does not affect the conduct protest hearings under Tax Code Chapter 41 relat-
eligibility of a person serving on an appraisal review board ing to property that has an appraised value as determined by
immediately before Jan. 1, 2020, to continue to serve on the the appraisal district equal to or greater than the prescribed
board for the term to which the member was appointed. minimum eligibility amount and is included in one of the fol-
lowing classifications:
Section 6.414 • commercial real and personal property;
SB 2 amends subsection (d) to prohibit an auxiliary board • real and personal property of utilities;
member from hearing taxpayer protests before a special panel • industrial and manufacturing real and personal prop-
under Tax Code Section 6.425 unless the member is eligible erty; and
to be appointed to the special panel. If one or more auxiliary • multifamily residential real property.
board members sit on a special panel established under Tax
Code Section 6.425 to conduct a protest hearing, the number Each special panel consists of three members of the appraisal
of regular appraisal review board members required to con- review board appointed by the chair of the board. To be eli-
stitute a panel is reduced by the number of auxiliary board gible to be appointed to a special panel, an appraisal review
members. board member must:
• hold a juris doctor or equivalent degree;
Effective Sept. 1, 2020, and takes effect only if HB 3 becomes • hold a master of business administration degree;
law. • be licensed as a certified public accountant under Oc-
cupations Code Chapter 901;
Section 6.42 • be accredited by the American Society of Appraisers
SB 2 amends subsection (a) to provide that the local admin-
as an accredited senior appraiser;
istrative district judge under Government Code Chapter 74,
• possess an MAI professional designation from the Ap-
Subchapter D in the county (rather than the board of directors
praisal Institute;
of the appraisal district) selects a chair and a secretary from
• possess a Certified Assessment Evaluator (CAE) pro-
among the appraisal review board members and is encour-
fessional designation from the International Associa-
aged to select a chair who has a background in law and prop-
tion of Assessing Officers;
erty appraisal, if any.
• have at least 10 years of experience in property tax ap-
The bill adds subsection (d) to provide that the concurrence praisal or consulting; or
of a majority of the members of the appraisal review board • be licensed as a real estate broker or sales agent under
present at a meeting of the board is sufficient for a recom- Occupations Code Chapter 1101.
mendation, determination, decision, or other action by the
The chair of the appraisal review board may appoint to a spe-
board. The concurrence of a majority of the members of a
cial panel an appraisal review board member who does not
panel of the board present at a meeting of the panel is suf-
meet the prescribed qualifications if the number of persons
ficient for a recommendation by the panel. The concurrence
8 — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2019appointed to the board by the local administrative district Effective Sept. 1, 2019, and the changes in law made by this
judge who meet those qualifications is not sufficient to fill the bill apply only to a tax year that begins on or after the ef-
positions on each special panel and the board member being fective date.
appointed to the panel holds a bachelor’s degree in any field.
Section 11.135
In addition to conducting protest hearings in special panels, a SB 443 amends subsection (a) to modify the requirement that
special panel may conduct protest hearings under Tax Code to continue to receive a residence homestead exemption un-
Chapter 41 relating to property not eligible for a special pan- der Tax Code Section 11.13 for a qualified residential struc-
el hearing as assigned by the chair of the appraisal review ture that is rendered uninhabitable or unusable by a casualty
board. or by wind or water damage, the owner must begin active
The minimum eligibility amount for the 2020 tax year is an construction of the replacement structure or other physical
appraised value equal to $50 million or greater. For each suc- preparation of the site. The bill provides that in cases of prop-
ceeding tax year, the minimum eligibility amount is equal to erty rendered uninhabitable or unusable as a result of a disas-
the minimum eligibility amount for the preceding tax year as ter in a Governor declared disaster area, active construction
adjusted by the Comptroller to reflect the inflation rate. By of the replacement structure or other physical preparation of
February 1 or as soon thereafter as practicable, the Comptrol- the site must begin not later than the fifth anniversary of the
ler shall determine the minimum eligibility appraised value date the owner ceases to occupy the former qualified residen-
amount for the current tax year and publish that amount in tial structure as the owner’s principal residence.
the Texas Register. The bill defines “inflation rate” and “Con- The bill adds subsection (a-1) to add an exception to the cur-
sumer Price Index” for purposes of this section. rent provision that an owner may not receive a residence
Effective Sept. 1, 2020, and takes effect only if HB 3 becomes homestead exemption under Tax Code Section 11.13 for a
law. qualified residential structure that is rendered uninhabitable
or unusable by a casualty or by wind or water damage for
Chapter 11. Taxable Property and more than two years. The bill provides that a five year limita-
Exemptions tion applies (instead of the two year limitation) if the prop-
erty is located in an area declared to be a disaster area by the
Section 11.13 Governor following a disaster and the residential structure
HB 2441 amends subsection (h) to modify the current prohi- located on the property is rendered uninhabitable or unusable
bition on an eligible disabled person who is 65 or older from as a result of the disaster.
receiving both a disabled and an elderly residence homestead
Effective June 4, 2019.
exemption but may choose either to provide that it is a pro-
hibition on receiving both exemptions from the same taxing
unit in the same year but a person may choose either if a
Section 11.141
HB 2859 adds this section to provide that a person is entitled
taxing unit has adopted both. The bill provides that an eli-
to a property tax exemption for precious metal that the person
gible disabled person who is 65 or older may receive both a
owns and that is held in a precious metal depository located
disabled and an elderly residence homestead exemption in the
in this state, regardless of whether the precious metal is held
same year if the person receives the exemptions with respect
or used by the person for the production of income. The bill
to taxes levied by different taxing units.
provides that notwithstanding Tax Code Section 11.14(c), the
Effective Jan. 1, 2020. governing body of a taxing unit may not provide for the taxa-
tion of precious metal exempted under this section.
SB 1943 amends subsection (h) to provide that an heir prop-
erty owner who qualifies heir property as the owner’s resi- The bill defines for purposes of this section:
dence homestead under Tax Code Chapter 11 is considered • “Precious metal” has the meaning assigned by Gov-
the sole recipient of any exemption granted to the owner for ernment Code Section 2116.001.
the residence homestead by or pursuant to this section. • “Precious metal depository” means a depository that
is primarily engaged in the business of providing
Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2019 — 9precious metal storage to the general public and main- lessee to provide the lessee’s name, address, and driver li-
tains sufficient insurance to cover precious metal de- cense or personal identification certification number applies
posited in the depository. to a lessee who is an individual. The bill provides that a form
shall require a lessee that is an entity described by subsection
Effective Jan. 1, 2020, contingent on voter approval of HJR
(b) to provide the lessee’s name, address, and, if applicable,
95, and applies only to a tax year beginning on or after the
federal tax identification number. The bill modifies the cur-
effective date.
rent certification under oath that the lessee does not hold the
vehicle for the production of income and that the vehicle is
Section 11.161 used primarily for activities that do not involve the produc-
HB 1526 adds subsection (b) to provide for purposes of sub-
tion of income to require that the form require a lessee who
section (a), a nursery stock weather protection unit, as defined
is an individual, or the authorized representative of a lessee
by Agriculture Code Section 71.041, is considered to be an
that is an entity described by subsection (b), to make the
implement of husbandry.
certification.
Effective Jan. 1, 2020, and applies only to a tax year that
The bill amends subsection (e) to modify the current provi-
begins on or after the effective date.
sions that an owner of a motor vehicle subject to a lease main-
tain a form completed by the lessee, make the form avail-
Section 11.24 able for inspection and copying by a chief appraiser, and if
SB 2 adds subsections (a) and (b) to prohibit the governing
a completed form is not maintained, the owner must render
body of a taxing unit from repealing or reducing the amount
the vehicle and may not file an exemption application for the
of a historic site exemption for a property that otherwise
vehicle to specify that this includes the form, an electronic
qualifies for the exemption unless the owner of the property
image of the form, or a certified copy of the form.
consents to the repeal or reduction; or the taxing unit pro-
vides written notice of the repeal or reduction to the owner Effective Sept. 1, 2019, and applies only to taxes imposed for
not later than five years before the date the governing body a tax year beginning on or after the effective date.
repeals or reduces the exemption.
Section 11.26
Effective Jan. 1, 2020, and takes effect only if HB 3 becomes
HB 1313 amends subsection (i) to modify the provision that
law. This section, as amended by this bill, applies only to an
a surviving spouse of an individual who qualifies for an ex-
authorized exemption that is repealed or reduced on or after
emption provided by Tax Code Section 11.13(c), relating to
Jan. 1, 2020.
residence homestead exemptions for those individuals who
are 65 years of age or older or disabled, is entitled to the
Section 11.252 school district tax limitation under certain circumstances by
SB 58 amends the title of the section to “Motor Vehicles
striking the requirement that this applies only to a surviving
Leased for Use Other Than Production of Income.” The bill
spouse of an individual who is 65 years of age or older.
amends subsection (b) to add to the circumstances in which a
motor vehicle is presumed to be used primarily for activities The bill adds subsection (i-1) to provide that a limitation un-
that do not involve the production of income to include when: der subsection (i) applicable to the residence homestead of
• the motor vehicle is leased to this state or a political a surviving spouse of an individual who was disabled and
subdivision of this state; or who died before Jan. 1, 2020, is calculated as if the surviv-
• the motor vehicle is leased to an organization that is ing spouse was entitled to the limitation when the individual
exempt from federal income taxation under Section died.
501(a), Internal Revenue Code of 1986, as an orga-
nization described by Section 501(c)(3) of that code; Effective Jan. 1, 2020, and applies only to a tax year begin-
and would be exempt from taxation if the vehicle were ning on or after that effective date. An amendment to the
owned by the organization. Texas Constitution, Article VIII, Section 1-b(d), was not
passed by the 86th Texas Legislature.
The bill amends subsection (d) to specify that the current
requirement that the form completed by a lessee require a
10 — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2019SB 1943 adds subsection (p) to provide that an heir property a disaster on or after the date a taxing unit adopts a tax rate
owner who qualifies heir property as the owner’s residence for the tax year in which the declaration is issued, a person
homestead under Tax Code Chapter 11 is considered the sole is not entitled to the exemption for that tax year unless the
owner of the property for the purposes of this section. governing body of the taxing unit adopts the exemption in
the manner provided by law for official action by the body.
Effective Sept. 1, 2019, and the changes in law made by this An exemption adopted by the governing body of a taxing unit
bill apply only to a tax year that begins on or after the ef- must specify the disaster to which the exemption pertains and
fective date. be adopted not later than the 60th day after the date the Gov-
ernor first declares territory in the taxing unit to be a disaster
Section 11.261 area as a result of the disaster. Not later than the seventh day
SB 1943 adds subsection (n) to provide that an heir property
after the date a governing body adopts the exemption, the
owner who qualifies heir property as the owner’s residence
taxing unit shall notify the chief appraiser of each appraisal
homestead under Tax Code Chapter 11 is considered the sole
district in which the taxing unit participates, the assessor for
owner of the property for the purposes of this section.
the taxing unit, and the Comptroller of the adoption of the
Effective Sept. 1, 2019, and the changes in law made by this exemption.
bill apply only to a tax year that begins on or after the ef-
The bill adds subsection (f) to provide that on receipt of an
fective date.
application for the exemption, the chief appraiser shall de-
termine whether any item of qualified property that is the
Section 11.35 subject of the application is at least 15 percent damaged by
HB 492 adds this section to create a temporary exemption for
the disaster and assign to each such item of qualified property
qualified property damaged by a disaster. The bill adds sub-
a damage assessment rating of Level I, Level II, Level III, or
section (a) to provide that in this section, “qualified property”
Level IV, as appropriate, as provided by subsection (g). In
means property located in an area declared by the Governor
determining the appropriate damage assessment rating, the
to be a disaster area following a disaster, that is at least 15
chief appraiser may rely on information provided by a county
percent damaged by the disaster (as determined by the chief
emergency management authority, the Federal Emergency
appraiser), and that consists of:
Management Agency, or any other source the chief appraiser
• tangible personal property used for the production of
considers appropriate.
income and is the subject of a rendition statement or
property report filed by the property owner under Tax The bill adds subsection (g) to require a chief appraiser to
Code Section 22.01 that demonstrates that the prop- assign to an item of qualified property one of the following
erty had taxable situs in the disaster area for the tax damage assessment ratings:
year in which the disaster occurred; • Level I: if the property is at least 15 percent, but less
• an improvement to real property; or than 30 percent, damaged, meaning that the property
• a manufactured home as that term is defined by Oc- suffered minimal damage and may continue to be used
cupations Code Section 1201.003 that is used as a as intended;
dwelling, regardless of whether the owner of the • Level II: if the property is at least 30 percent, but less
manufactured home elects to treat the manufactured than 60 percent, damaged, which, for qualified prop-
home as real property under Occupations Code Sec- erty that is an improvement to real property or a man-
tion 1201.2055. ufactured home, means that the property has suffered
only nonstructural damage, including nonstructural
The bill adds subsection (b) to provide that a person is en-
damage to the roof, walls, foundation, or mechanical
titled to the exemption of a portion of the appraised value of
components, and the waterline, if any, is less than 18
qualified property that the person owns in an amount deter-
inches above the floor;
mined under subsection (h).
• Level III: if the property is at least 60 percent damaged
The bill adds subsections (c), (d), and (e) to provide that not- but is not a total loss, which, for qualified property that
withstanding subsection (b), if the Governor first declares is an improvement to real property or a manufactured
territory in a taxing unit to be a disaster area as a result of home, means that the property has suffered significant
Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2019 — 11structural damage requiring extensive repair due to Effective Jan. 1, 2020 upon voter approval of HJR 34, and
the failure or partial failure of structural elements, applies only to taxes imposed for a tax year that begins on or
wall elements, or the foundation, or the waterline is at after the effective date.
least 18 inches above the floor; or
• Level IV: if the property is a total loss, meaning that Section 11.41
repair of the property is not feasible. SB 1943 adds subsection (c) to provide that an heir property
owner who qualifies heir property as the owner’s residence
The bill adds subsection (h) to provide that subject to subsec-
homestead under Tax Code Chapter 11 is considered the sole
tion (i), the exemption amount is determined by multiplying
owner of the property for the purposes of this section.
the appraised value, determined for the tax year in which the
disaster occurred, of the property by: Effective Sept. 1, 2019, and the changes in law made by this
• 15 percent, if the property is assigned a Level I dam- bill apply only to a tax year that begins on or after the effec-
age assessment rating; tive date of this bill.
• 30 percent, if the property is assigned a Level II dam-
age assessment rating; Section 11.42
• 60 percent, if the property is assigned a Level III dam- HB 2859 amends subsection (b) to add Tax Code Section
age assessment rating; or 11.141, relating to the exemption for precious metal held in a
• 100 percent, if the property is assigned a Level IV precious metal depository, to the list of exemptions that are
damage assessment rating. effective immediately on qualification for the exemption.
The bill adds subsections (i) and (j) to provide that if a person Effective Jan. 1, 2020 upon voter approval of HJR 95.
qualifies for the exemption after the beginning of the tax year,
the amount of the exemption is calculated by multiplying the HB 492 amends subsection (e) to add Tax Code Section
amount determined under subsection (h) by a fraction, the 11.35, relating to a temporary exemption for qualified prop-
denominator of which is 365 and the numerator of which is erty damaged by a disaster, to the exemptions that when a
the number of days remaining in the tax year after the day person qualifies for the exemption, the person may receive
on which the Governor first declares the area in which the the exemption for the applicable portion of that tax year im-
person’s qualified property is located to be a disaster area, mediately on qualification.
including the day on which the Governor makes the declara- Effective Jan. 1, 2020 contingent on voter approval of HJR
tion. If a person qualifies for the exemption after the tax due 34, and applies only to taxes imposed for a tax year that be-
on the qualified property is calculated and the effect of the gins on or after the effective date.
qualification is to reduce the tax due, the assessor for each
applicable taxing unit shall recalculate the tax due and cor- Section 11.43
rect the tax roll. If the tax bill has been mailed and the tax HB 2859 amends subsection (a) to add Tax Code Section
on the property has not been paid, the assessor shall mail a 11.141, relating to the exemption for precious metal held in
corrected tax bill to the person in whose name the property a precious metal depository, to the list of exemptions that do
is listed on the tax roll or to the person’s authorized agent. If not require an application to claim the exemption.
the tax on the property has been paid, the tax collector for the
taxing unit shall refund to the person who paid the tax the Effective Jan. 1, 2020 upon voter approval of HJR 95.
amount by which the payment exceeded the tax due. The bill
HB 492 amends subsection (c) to add Tax Code Section
provides that no interest is due on a refunded amount.
11.35, relating to a temporary exemption for qualified prop-
The bill adds subsection (k) to provide that the exemption erty damaged by a disaster, to the exemptions that once al-
expires as to an item of qualified property on January 1 of the lowed do not need to be claimed in subsequent years except
first tax year in which the property is reappraised under Tax as otherwise provided.
Code Section 25.18.
Effective Jan. 1, 2020 contingent on voter approval of HJR 34.
12 — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2019You can also read
